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Cost of doing business fuels cost spike

Cost of doing business fuels cost spike
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ST. JOHN | Some companies that do business with the town of St. John are tacking on an extra fee for their services to cover increased fuel costs.

Anything involving shipping, delivery or pickup, such as the town's waste hauler, is adding a surcharge, Town Manager Steve Kil said.

Even the fueling company that delivers fuel for the town is charging extra, he said.

"I'm seeing it especially on the trucking side, because diesel fuel is so high," he said.

Surcharges vary from $30 to $400 per company, depending on how often and how many trucks are working in and around the town.

"It's something we simply are not used to," Kil said.

Diesel fuel is extremely expensive, and those companies are passing the burden on to its customers, he said.

It's typical for a contract to contain language that allows them to impose a surcharge, but it hasn't come into play before, he said.

"Nobody has ever done that in the past--ever--until now, because fuel is at an all-time record," Kil said. "I understand why it's being done."

Copyright 2012 nwitimes.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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